Being a 'Qualified Buyer'

At this month’s Denver ETA Meetup, our team at PROX Search Capital had the pleasure of hosting two top SBA lenders, Andrea Garnett (Live Oak Bank) and Jared W Johnson (First Internet Bank) for a candid conversation about the state of SBA lending and what it really takes to be taken seriously as a buyer in today’s market. One major theme stood out: the importance of being a qualified buyer. Brokers are seeing too many LOIs from individuals who aren't yet ready to close, which creates tension and wasted time for everyone involved. If you’re serious about buying a business, here’s what it takes to stand out: 🔹 Relevant operating experience. Show you’ve done something that demonstrates your ability to run the business you’re targeting. 🔹 Investor support letters. These validate your network and signal credibility to both brokers and lenders. 🔹 Pre-qualification from SBA lenders. This shows you’ve already begun working through financing and are prepared to move quickly. 🔹 A strong personal balance sheet. The SBA wants to know you can weather a worst-case scenario if needed. Bottom line: brokers want to work with buyers who offer certainty of close. If you’ve taken the right steps to signal that you’re ready, the difference in how you’re received is night and day. Thanks again to Andrea and Jared for their insights, Adam Markley for leading the conversation, and to everyone who continues to show up and build this community with us at PROX Search Capital. Join the ETA Meetup Group here: https://www.meetup.com/denver-entrepreneurship-through-acquisition-eta-meetup/